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New bike + cash discount?

Discussion in 'General Motorcycling Discussion' at netrider.net.au started by undii, Jan 3, 2006.

  1. Hi,
    I've been wondering, if you went into a dealer and offered a cash sale for a new bike, would there be any chance of a cash discount sale? Just seeing if it's worth taking all the cash out of my bank account when I go to purchase my next bike :)

  2. Cash is king and there's always room for a discount when paying in full on the spot....but 'cash' doesn't have to mean folding, your eftpos card is just as good as long as its savings and not credit.
  3. Don't forget that your eftpos card only allows you withdraw $800-1000 a day depending on your bank.
  4. Or you could offer a cash sale on the understanding that you will need 5-10mins to run to the bank if they accept the offer. That's how I do it, saves walking around all day with several thousand bucks in your pocket. :wink: :grin:
  5. Sounds good :)
  6. Will they really want to take "cash" literally? It means handling and of course, greater exposure to risk. I would have thought that a bank cheque would be as persuasive. But then, they DO make comissions on finance if you go through them.

    I'd probably suggest that it may not make much of a difference to your bargaining power. The bike in question will have an amount on it that the dealer won't drop below. What gives you power is that you can walk out and go to another dealer. If you make an offer and they don't like it, you can say, "fine, I'll continue looking. Good day to you." If you walk out and the salesman doesn't follow, then you know that you've probably offered below what the salesman is prepared to let the machine go for.

    And it's a myth that they will sell it to you "cost" and hike up the charges for the next sale. They do what they can to maximise the profit from each sale. It's how they make their living. They will kill a sale if they know that they won't make any money on it, or the required profit margin.

    Another tip. If you make an offer and the salesman goes, hmm, I'd have to talk to the boss about that. When he goes "out the back" it's most likely to get a cuppa, have a smoke or take a leak. He will know exactly what the vehicle can be sold for. He may have a few bux to play with, but not much. Most vehicles sitting in the showroom or on the lot are under finance. so in that respect they owe the dealer money which he expects to recoup via the sale process.

    With regards to electronic payment, probably the best way to do it is via direct deposit. If they are with the same bank as you, then they'll see the transaction almost immediately, or up to 24 hrs following if a different financial institution.

    There's a book out there, published 10 or more years ago now and promoted via Australian Consumers Association. Titled "Buying a New or Used Car in Australia", it was written by a former Holden dealer and used car salesman. It may still be in print. But it describes all the tactics that they use to sell you a car. A bike is no different. It makes for interesting reading. A lot of the tactics may have changed over the years, but the basics are still there.

    It also talks about how "factory bonuses" work, and "end of model runouts" are handled. Mostly it's bogus manipulating to make a product appear cheaper. Occasionally, there are real deals to be had, but usually it means that it's stock that the dealer can't move, say, superceded models.

    For example, the ZX-12 is about to be superceded by the ZX-14. If dealers still have old stock sitting around, they may go for a good price. But you have to keep an eye on the market from now up til when the new models are released, then see what the dealers will let the old bikes go for.

    I'm currently looking at perhaps a VTR1000F. Used examples are selling for more than what some dealers are offering new models for. Redwing Honda, for example, has a plated 04 model for $11,990, and 05 models for $12,990. RRP is around $15k, but quite a few used examples are selling for these prices and higher.

    So, before you go in offering "cash" make sure that the bike that you're interested in is competitively priced. Scour and peruse the likes of Bike Trader, Bikesales.com.au, bikepoint.com.au, the trading post and the dealers. Find your desired model and then focus on that.

    I think that cash sales really only benefit small ticket items like VCRs and the like which people often buy on their Visa. Paying cash means less costs to the merchant so they can afford to offer a cash discount price.

    A mate went into Harvey Norman's recently and bought a Sony Trinitron TV. He considered the interest free "offer", but was told that he'd have to pay full retail on this. I understand that this allows the salesman to get full price commission. He ended up paying "cash" and got I think $100 of the listed price.

    So, do some legwork. Visit the dealers, tyre kick, note the bikes that are on offer and do your research.
  7. I have just been through this and found a $500 cash deposit was good for getting a good deal and then i paid for it via eftpos. I was doing some reasearch and as stated above alot of the sales man want to make a better deal via finance, as they get a comission and if its yamaha finance they are still making money form you with interest, and therefore may be willing to drop the price more. Also do your homework, i did about 3 months worth of spread sheets of different prices, both used and new. then when a bike came up at a good price went and bargined alot and got it a a great price.

  8. The only problem with that for me is the next bike (which I'm fairly sure) of buying is the daytona 675. There is only one Triumph dealer in the city for Triumph that I am aware of :(
  9. Yes but you wouldn't 'withdraw' the money, you would just pay for the bike
  10. Believe it or not, as BiX partly stated above, cash is actually no incentive at all for a new bike. They earn more money from you through finance and/or trade-in's than straight cash alone, so your more likely to have some haggling/discount room with finance and/or trade-in. Cash/Eftpos/Credit/Finance .. they still get paid, but it's what more they can get out of the deal that allows them to wriggle/discount.

  11. There are other Triumph dealers outside of melbourne..Bendigo and Shepparton for example

  12. *nod* I won't be doing either so I won't worry too much about hoping that cash will be an incentive for a discount :)
  13. Hmm, then you may have a problem. Of course, you can make the decision of either buying a Triumph or some other make. Just say to the salesman, "I am tossing up over that Daytona or a GSXR-750 or whatever that I've spotted at another dealer. What's the best that we can do here?" And see what he does.

    Apparently this doesn't work in the Harley market, as those who are after Harleys are usually not interested in anything else. So, the likes of PS can ask whatever they like, and apparently they do.....
  14. if you have cash always say, you will give them a deposit of XX for a price of XXXX and see what they do, sometimes, if its a little less than what are willing to do they may come down (though i am sure they are not willing sell below a certain mark) though i did get a bike from 13500 ride away to under 10 with oggy knobs and a centre stand, but it was still 200 over my limit so walked away.....
  15. sorry i'm of no help but i have a moderately related question.

    what do you need to have to have finance approved? i'll be going to uni next year and wont have a fulltime job. plus i don't have alot of money in the bank. i'll be able to pay weeekly or monthly installments no probs though. and what are the interest rates like on finance? 10% or less than that?
  16. Around 13% for bike finance, particularly for used bikes. The rate too, depends on your credit history and risk.
  17. Unfortunately age is the thing you have working against you the most...your best chance of getting finance approved is to have a parent or relative guarantor the loan. If someone underwrites it for you, ie agrees to make payments if you default you should have no problems.

    Other than that, with no track record you might have a bit of difficulty.

    Credit cards are an option and one I have used when having difficulty getting finance, but obviously you pay a premium interest rate.
  18. All dealers are not equal, eg. Some have sole distribution agreements with the manufacturers and therefore other dealers peddling the same brand can only sell what has been allocated to them by the sole distributor.

    What this means in most cases is that you can not play off one dealer against another unless they both have the identical model you want in stock for immediate delivery.

    Its all about stock- who’s got what, & who’s holding too much of a particular model.

    You are un likely to be in the know of who has the most stock of the exact model you want, that’s where the discount will be the greatest, the guy holding the most of what your after.
  19. Thats an interesting point.

    So would there be more bargaining power with a dealer who stocks a range, say like Better Bikes than a dealer who stocks just one or two concentrated brands?
  20. duncank we are talking new not used.